This bill establishes two new committees within the Financial Stability Oversight Council to identify and address climate-related financial risks: a Climate Financial Risk Committee made up of staff from member agencies, and an Advisory Committee on Climate Risk with up to 30 experts in climate science, economics, finance, and advocacy. The Advisory Committee will meet bimonthly and provide guidance on how climate change could threaten the nation's financial system. The bill requires the Financial Stability Oversight Council to publish annual reports assessing climate risks to U.S. financial stability and offer recommendations to federal and state regulators and Congress. Additionally, it directs federal banking agencies to update their supervisory guidance on climate risk for large institutions with assets over $50 billion, mandates the Federal Insurance Office to report on climate impacts to the insurance sector, and requires collection of detailed homeowners insurance data by zip code to track how climate risks affect insurance markets and availability. The bill includes a nonbinding call for the U.S. to coordinate with international financial regulators on climate risk.
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